SAMSUNG E&A awarded contract for UAE's first methanol plant

SAMSUNG E&A is set to construct the UAE’s first methanol plant in Al Ruwais Industrial City, Abu Dhabi

This follows the award of an engineering, procurement and construction (EPC) contract award worth US$1.7bn (AED6.2bn) from TA’ZIZ, the UAE’s chemicals and transition fuels ecosystem.

The project is in line with TA’ZIZ’s mission to advance the UAE’s economic diversification by unlocking new domestic chemical value chains. The 1.8 million tons per annum (mtpa) plant is set to be one of the world’s largest methanol plants, as well as one of the most energy-efficient, as on completion in 2028 it will be powered by clean energy from the grid.

Promising transition fuel

Methanol is a promising transition fuel, offering a cleaner alternative to conventional fuels such as coal and diesel for power generation. It also serves as an alternative to high-sulphur fuels used in marine transportation. Additionally, methanol is a key feedstock for a range of chemical derivatives, allowing the production of thousands of products including plastics, resins, pharmaceuticals and building materials.

TA’ZIZ, founded in 2020 as a joint venture between ADNOC and ADQ, is a manufacturing, industrial services, logistics and utilities ecosystem that drives, the production of chemicals value chains and transition fuels.In its initial phase, TA'ZIZ will produce 4.7 mtpa of chemicals by 2028, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Several of these chemicals will be produced for the first time in the UAE, reinforcing TA’ZIZ’s strategic goal to expand the local chemicals value chain and advance economic diversification through industrialisation.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said, “This landmark EPC contract award is a significant step in realizing TA’ZIZ’s vision to drive the UAE’s industrial growth by creating a world-scale integrated chemicals ecosystem in Al Dhafra region. The plant will enhance the UAE’s position as a leader in sustainable chemicals production and strengthen TA’ZIZ’s role in enabling ADNOC’s global ambition to lead the chemicals sector.”

SAMSUNG E&A will bring its successful experience of a recently completed methanol plant in Malaysia and will apply its unique execution system, involving modularisation and automation, to the project.

Hong Namkoong, president and CEO of SAMSUNG E&A, said, "SAMSUNG E&A is honoured to receive this recognition, highlighting TA’ZIZ’s and our commitment to driving industrial innovation, diversifying the UAE's economy, and enabling sustainable growth. We plan to actively leverage local resources and our network of partners based on our extensive regional experience in the Ruwais Industrial Complex, UAE. This milestone underscores the power of collaboration in creating world-scale facilities that will position the UAE as a global hub for advanced methanol production.”